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. it is tax hikes on every household. today california leaders said the voters have spoken, but it is not clear if lawmakers can return to washington and work together. congresswoman nancy pelosi spent the day mixing and mingling at the presidio. but fixing the country's finances was on her mind. >> we have a deficit we have to deal with. we have to do it with growth and the creation of jobs. we have to do it with cuts. we all know that, but we have t.o. do it with revenue. >> reporter: she will be returning to capitol hill pushing a deal backed by barack obama. that will include tax hikes on wealthier households. republicans who still control the u.s. house of representatives have started to dig in. >> raising tax rates will slow down our ability to crow 80 the jobs everybody wants. >> reporter: what are the consequences if law i can makers cannot make a deal. >> the fiscal clip is very bad if it happens. it means we could have a huge recession next year. >> reporter: if scheduled budget cuts are imposed an estimated 400 government jobs could be slashed and about 400,000 j
for allegedly carrying bomb-making materials will be in court tomorrow. jeffrey mcgann of southern california was taken into custody on wednesday night. he had a watch with fuses and wires. he had also had layers of insoles which were two sizes too big. he said he is an artist and what he was carrying was art work. mcbegan's lawyer gave us a statement and he said in part artists have artistically and mcgann didn't have the materials to hire anyone. it has been a wet weekend, but right now it is looking dry outside. the question is will it last? let's head to leigh glaser for a first check on weather and take a look at it. >> you can get a sense that while we are seeing mainly cloudy conditions out there, there are still some locations that are picking up a little moisture. not all of what you are seeing is actually reaching the ground. we have had reports, santa rosa a little light rain. san francisco a few sprinkles there and as we head out toward the east bay, concord, walnut creek and moraga and even as far east as san ramon and even toward brentwood. some of the low clouds producing some
home to rancho palace -- palos-verdes in southern california. we heard he took it off and covered it with a coat. >> it had a toggle switch, a series of fuses, series of wires protruding from it, a circuit board. >> reporter: alameda county sheriff sergeant jd nelson said even though mcgann was not in possession of the explosives, the bomb squad determined he had what is needed to make a timing device for a bomb. police say his boots were two sizes too big and stuffed with layers of in soles like shoe bomber richard reid. >> they had what appeared to be a homemade cavity in there. >> an area where something could be statuted. stashed. his shirt was military style and tier gnaw kit -- turn kit in the sleeve. it can stop the bleeding if your arm is injury. and there is always the concern that this could have been a dry run. in the newsroom, ama date, abc7 news. >> thank you. let's go overseas. a massive blast rocked gaza city as israel and hamas edge closer to the brink of war. it struck the police headquarterses and it was more than 180 strikes in the past few hours. the battle beg
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